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RAD OK clears way to securing land, financing for Plan B Here's a quick rundown on what the Regional Asset District's historic vote means for residents of Western Pennsylvania Friday, July 10, 1998 By Robert Dvorchak, Post-Gazette Staff Writer
Now that the Regional Asset District has approved the use of $13.4 million a year for the next 30 years from Allegheny County's sales tax, what happens next in the process of building two stadiums and expanding the David L. Lawrence Convention Center?
Here is the answer to that question and others raised by the RAD board vote last night:
A. With local funding and commitments by the Pirates and Steelers firmed up, a bridge loan probably will be secured to begin acquiring property and developing the sites for the stadiums. An interim loan of $22 million has been secured from Mellon Bank to acquire property for the convention center expansion.
Q. Why not wait until all the money is in hand?
A. Local officials have promised the Pirates and Steelers they will deliver a clean site so ground can be broken by April 1. For the baseball park site next to the Sixth Street Bridge, a senior citizen high-rise must be purchased and the residents relocated. And a block of row homes must be acquired and demolished. Accomplishing all that by April 1 will be difficult.
Q. Hasn't all the money been thrown into the pot?
A. Not yet. A third of the costs of the ballpark and football stadium -- about $150 million total -- must come from the state. Gov. Ridge has pledged to come up with the money; he has already presented a $150 million check for half of the convention center expansion.
Q. Will he just write another check?
A. Not exactly. The stadium money could come through the Redevelopment Assistance Program, a source of money for projects that aren't state-owned. There's about $90 million in the pot now. For the state to borrow more, the state House and Senate will have to vote on raising the debt limit.
Q. When will that come?
A. Because this is a volatile issue in a campaign year, nothing will happen until after the November election. Ridge is seeking a second term; all 203 House members and half of the 50 senators are up for re-election. But the key number on stadiums is four, not two. Philadelphia is working on plans for a new ballpark and football stadium to replace Veterans Stadium. Given the political clout of the state's two biggest cities, the state money seems safe.
Q. But if the state money doesn't come until after November, will it mess up the timing?
A. Not necessarily. By obtaining interim loans on money that's anticipated, local officials can obtain the cash they need to move ahead. When all the money is in from the Regional Asset District, the county hotel tax, the Pirates, the Steelers and the state, plus the $28 million in federal money pledged by Republican Sen. Rick Santorum, bonds will be sold in a single package. That will probably happen in January.
Q. What else is left?
A. So far, the Pirates and Steelers have agreed to term sheets. Those must be translated into official documents and lease agreements. Also, the concept of private investment capital has to be sold. This involves enticing local corporations or foundations to pay for items such as scoreboards, seats and signs, which will be leased to the teams. It's supposed to raise $31 million. The investors would get a tax break by claiming depreciation over time.
Q. And then?
A. The Pirates and Steelers, both of which have agreed to cover cost overruns during construction, must hire construction companies and get to work.
Q. If all this happens -- and that's a big if -- what will we see?
A. Pirates officials say that if they don't have their new park by April 2001, they'll give up a lot of money they can't afford to lose. The Steelers hope to kick off their pre-season schedule in their new digs in August 2001.
Q. And what happens to Three Rivers Stadium?
A. Under Plan B, $45 million has been set aside to pay off debt and demolish it.
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